• 3 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 6 minutes Why is Strait of Hormuz the World's Most Important Oil Artery
  • 8 minutes OPEC is no longer an Apex Predator
  • 12 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 2 hours Australian Voters Reject 'Climate Change' Politicians
  • 6 hours Australia Election Summary: "This was the Climate Change Cult Election, and the Climate Change Cult Lost"
  • 10 hours Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 2 hours Shale to be profitable in 2019!!!
  • 43 mins Global Warming Making The Rich Richer
  • 14 hours China Downplays Chances For Trade Talks While U.S. Plays ‘Little Tricks’
  • 14 hours IMO2020 To scrub or not to scrub
  • 14 hours California Threatens Ban on ICE Cars
  • 13 mins Shell ‘to have commercial wind farms’ by early 2020s
  • 15 hours Did Saudi Arabia pull a "Jussie Smollett" and fake an attack on themselves to justify indiscriminate bombing on Yemen city population ?
  • 15 hours "We cannot be relying on fossil fuels to burn as an energy source at all in our country" - Canadian NDP Political Leader
  • 10 hours Some Good News on Climate Change Maybe
  • 6 hours Misunderstanding between USA and Iran the cause of current stand off, I call BS
  • 6 hours DUG Rockies: Plenty Of Promise, Despite The Politics
A Double Dose Of Chaos For Oil Markets

A Double Dose Of Chaos For Oil Markets

An escalating trade war between…

The IEA's Dire Warning For Energy Markets

The IEA's Dire Warning For Energy Markets

Global energy investment “stabilised” at…

Enbridge Pipeline Fire Could Cause Higher Oil Prices in North America

Over the weekend Enbridge Inc. had to shut its Illinois pipeline, which supply’s oil to the BP plc., Exxon Mobil Corp, and Citgo Petroleum Corp, refineries in the Chicago area, following a collision between two vehicles which killed two people, injured several others and set fire to the pumping station near New Lenox, Illinois. About 20,000 gallons of oil leaked from the lines before flow could be halted.

Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt, believes “the pipeline closure could pressure local prices in the North American market, but I can’t see any price implications for global markets.”

Three pipes were damaged. Line 6A has already restarted transporting crude oil. According to Larraine Little, a spokeswoman for Enbridge, line 14 is expected to resume operation on March 7th, with line 64 planned for the following day.

Flow has been limited along the pipeline. The 14/64 pipe can ship 320,000 barrels a day from Superior, Wisconsin, to Mokena, Illinois, while 6A can carry 670,000 barrels a day between Superior and Griffith, Indiana. Rachel Moore, a spokeswoman from Exxon (who have a refinery in Illinois dependant on the Enbridge pipeline) said that, “at this point contractual obligations are being met. As is our practice we do not comment on day-to-day operations.”

Andy Lipow, president of Lipow Oil Associates LLC, stated that the disruption to supply along the pipeline is “going to put pressure on producers” by reducing their ability to transport crude oil to buyers. “All of the outbound pipeline capacity out of North Dakota and Canada was already running at capacity.”

By. Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News